Louisiana P&C Adjuster Practice Exam

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Study for the Louisiana Pandamp;C Adjuster Exam. Utilize flashcards and multiple choice questions, each question comes with hints and explanations. Prepare confidently for your exam!

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What is the minimum amount of damage Ted’s insurance will pay after considering his hurricane deductible?

$0
$2,000
$4,000
$8,000

The correct answer is: $0

To determine the minimum amount of damage Ted's insurance will pay after considering his hurricane deductible, it is essential to understand how deductibles function within an insurance policy. A hurricane deductible is the amount that the policyholder must pay out-of-pocket before the insurance coverage kicks in for claims arising from hurricane-related damages. If the damages sustained by Ted are less than or equal to the amount of the deductible, the insurance company would not pay any damages. Therefore, if the deductible exceeds or matches the total damage amount, it results in an insurance payout of $0. This means that for any damages falling below the deductible, the insurance company will not provide compensation, leading to a minimum payout of $0 in such cases. In this scenario, if Ted's damages after a hurricane were, for example, $1,000, and his deductible was set at $2,000, he bears the full cost without receiving any payout from his insurer. As a result, stating that the minimum amount of damage Ted’s insurance will pay after considering his hurricane deductible is indeed $0 aligns perfectly with how deductibles are applied in insurance claims.